Bargain-hunting for tech stocks boosts bourses

Shares finished on a higher note yesterday as strength in technology heavyweights set the pace.

The benchmark TAIEX closed up 64.91 points, or 1.1 percent, at 6,065.91. Advancers outnumbered decliners 675 to 211 with 128 stocks unchanged. However, turnover fell to NT$58.66 billion (US$1.86 billion) from NT$72.2 billion the previous day.

"After recent offloading by foreign investors, bargain hunting in tech stocks appeared," said Jose Lee, an analyst at First Taisec Securities (一銀證券).

Net selling of local shares by foreign institutional investors totaled NT$52.73 billion in a 10-session selling spree between March 14 and yesterday.

"On top of that, government funds were also suspected of buying a number of tech heavyweights to underpin the bourse's rise," Lee said.

Technology stocks rose 1.3 percent as a whole, supported by gains in flat-panel and chip stocks.

AU Optronics Corp (友達光電), the world's No.3 maker of liquid-crystal-display panels, rose 1.6 percent to NT$44.85 and Chi Mei Optoelectronics Corp (奇美電子) gained 2.3 percent at NT$45.10.

"The modest rise in the US chip stocks overnight also provided a good cue for investors," Lee said.

However, trade was generally lackluster as participants were cautious ahead of today's planned protest against China's "Anti-Secession" Law. Johnny Lee, an analyst at President Securities (統一證券), said the market's attention was mostly on the Chinese and Taiwanese governments' response to the protest.

"Concerns about the effect [of the law] will fall if the protest ends peacefully and officials across the strait don't make hawkish comments on the issue,'' Lee said.